Motilal Oswal has issued a buy rating on Mankind Pharma with a target price of ₹2,975 in its research report dated July 31, 2026. According to the brokerage's analysis, the pharmaceutical company's revenue and EBITDA performance for the first quarter of FY27 was in line with market expectations, though profit after tax missed forecasts due to lower other income and higher tax rates.
The company achieved second consecutive quarter of double-digit year-on-year growth in the prescription business (excluding Consumer Health) during 1QFY27. As reported by Motilal Oswal, this growth was driven by momentum across chronic therapies and recovery in acute therapy segments. However, the Consumer Health segment experienced muted growth due to the discontinuation of discounted cash-and-carry sales, with the company expecting normalization of channel rationalization to deliver high single-digit to double-digit growth from the next quarter onwards.
Mankind Pharma achieved superior growth in exports excluding BSV, led by new product launches in the US and favorable currency movements. According to the brokerage's report, the BSV scale-up showed encouraging performance with 21% year-on-year growth in 1QFY27. Domestic BSV revenue rose 17% year-on-year while international revenue grew 25% year-on-year during the quarter.
Motilal Oswal has reduced its earnings estimate for FY27 by 4% factoring in the muted consumer health segment performance. The brokerage values Mankind Pharma at 40x 12-month forward earnings to arrive at the target price of ₹2,975. The recommendation reflects the company's strong performance in prescription business and export markets, despite challenges in the Consumer Health segment.
